KUALA LUMPUR: The government, through the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA), has introduced two new funds under the 12th Malaysia Plan (12MP), namely the Domestic Investment Accelerator Fund (DIAF) and the Foreign Investment Accelerator Fund (FIAF). These initiatives aim to support businesses and attract foreign direct investment (FDI).
According to BERNAMA News Agency, MITI Deputy Minister Liew Chin Tong stated that DIAF and FIAF build upon the foundation laid by the Domestic Investment Strategic Fund (DISF) and the High Impact Fund (HIF). These funds are aligned with the government’s current policies under the MADANI Economy framework and the New Industrial Master Plan (NIMP) 2030. DISF and HIF, which were part of the 10th and 11th Malaysia Plans, have been fully utilised, supporting 526 projects.
Liew further elaborated that DIAF is designed to assist small and medium enterprises (SMEs) and mid-tier companies in obtaining certifica
tion or verification for adopting environmental, social, and governance elements. This support will be provided through matching grants, with ratios of either 50:50 or 70:30 for eligible expenses, based on project evaluation.
Additionally, DIAF offers a 3.0 percent interest rate subsidy on hire-purchase or term loans, with a 12-month tenure for eligible capital expenditures focused on automation and digitalisation projects. This initiative is expected to enhance technology adoption among local businesses.
FIAF, on the other hand, targets attracting high-quality foreign direct investment, in line with NIMP 2030 goals. The fund operates as a matching grant, with a 50:50 ratio for eligible expenses and supports activities such as research, development, and innovation in Malaysia, as well as technical training for full-time local workers.
In response to a query from Sim Tze Tzin (PH-Bayan Baru) regarding the reinstatement of previous funds, Liew assured that MITI and MIDA would continue to evaluate the effecti
veness of current incentives, ensuring they meet government policies and industry needs. The goal is to enhance local companies’ competitiveness and attract quality foreign investments that generate positive spillover effects.